Posted on: 15 February 2015 by Ross McSweeny
Air Arabia has published its financial results for the full year ending 31 December 2014, reporting a record net profit of AED 566 million, up 30% compared with the AED 435 million achieved in 2013.
The airline’s turnover for the full year 2014 reached AED 3.7 billion, an increase of 17% on 2013, driven simply by increased passenger numbers. Air Arabia carried more than 6.8 million passengers in 2014 – up 12% on the previous year – with an average seat load factor of 81%.
Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia, remarked, “Our programme of expansion into new markets combined with improved operational efficiencies has led to another year of sustained growth and profitability for the airline. The strong performance over the year is also testament to our focus on delivering outstanding quality and value to our customers.
“The year 2015 continue to witness political uncertainty in some parts of the region and with the current fluctuating fuel prices, the pressure on the global economies is increasing,” Al Thani continued. “Despite the regional and global economical and geo-political challenges, we remain highly confident about the long-term prospects for our business. We have begun this year with the aim of continuing our strategy to expand into new markets and increase our network coverage, making air travel accessible to millions of customers across the MENA region and beyond.”
Air Arabia’s net profit for the fourth quarter (4Q14) was AED 68 million, a drop of 28% compared with the AED 94 million announced for 4Q13. The airline attributes the drop in 4Q14 profit to a temporary downward correction in the fuel hedge portfolio, which will regain its benefits going forward. The airline’s turnover for 4Q14 was AED 924 million, an increase of 14% compared with AED 811 million in 4Q13. Passenger traffic for 4Q14 reached 1.7 million, an increase of 8% compared over 4Q13’s figure.